The Founder

  1. What makes Ray Kroc and the brothers different from each other?
    Both Ray Kroc and the McDonald’s brothers seem to have entrepreneurship spirits there are some minor differences between the two. Regarding Ray Kroc, he had tried multiple products that will bring about his success, as evident in the conversations he had with his wife, but what he lacked is an idea that will revolutionize an already existent industry. Whereas the brothers remodeled the restaurant business and made it more efficient and productive. For instance, the McDonald brothers got rid of the unnecessary packaging and waste of time that occurs in traditional restaurants and made it so that the labor used in the process of making the food was used solely for the purpose of, well, making the food. That said, one thing the brothers lacked, and Ray Kroc had, is ambition. Though they have tried to expand and franchise the idea, Ray Kroc saw the potential of making McDonald’s a restaurant from coast to coast with high supervision, he took a great risk, met new people, and became persistent until the franchise became successful.
  2. Do you think the McDonald’s brothers did the right thing by selling out to Ray Kroc? Did Ray Kroc give the brothers a good deal?
    The McDonald’s brothers did the right thing because, had they been stubborn to Kroc, they would’ve drowned in legal expenses and other costs associated with legal battles.
    Yes, some people believe that Ray Kroc wasn’t fair towards the brothers because he technically stole their innovative idea of the “speedy system,’ however, had it not been for Ray Kroc pushing forwards and “being persistent” maybe McDonald’s wouldn’t exist today. Unlike the brothers, Kroc put his own house as collateral for the loan he had taken from the bank to expand the speedy system idea, he had traveled to multiple cities, made business associates, and found talented people to run each individual store, which the McDonald’s brothers failed to initially achieve.
    Though two million after taxes is low relative to today’s MacDonald’s generated revenue, at the time, the brothers got a good deal and if they have refused and gone into a legal battle, maybe the business would’ve failed and each of the three end up with nothing. However, one thing Ray Kroc did not fulfill is the one percent royalty the brothers would’ve got which he should’ve been sued for by the brothers.
  3. How did the local store franchisees make money?
    The local franchisees would make money after operating the whole business independently but following a strict standard that the two brothers and Ray had in the contract. After the businesses made revenue, Ray Kroc would receive 1.4 percent of the generated revenue, while the brothers would receive 0.5 percent.
  4. How did Kroc make money? How was that different than the franchisees, running the local stores?
    After being late on his payments of the loan he had taken, Ray Kroc encountered a lawyer who would offer him a business idea and leverage his position in order to generate greater profits. Hence, Ray Kroc will own the land the McDonald’s restaurants will open in, and then go on a lease to those who will put an establishment on such land. This, in turn, allowed Ray Kroc to open a separate reality entity but frustrated the two brothers because they had believed it had preached the contract, however, Ray Kroc reminded the two brothers that what he was doing is outside the business rather than the operation of the business and product-making. This allowed Ray to generate a higher revenue than the initial 1.4 percent he was earning from running the local stores.
  5. Does this film change your view of McDonald’s?
    As someone who is concerned about the health of people, I’ve always held negative views towards McDonald’s as they offer unhealthy meals and run deceptive ads to lure kids into their restaurants. Still, such kids will end up unhealthy as adults. However, this movie changed said views a bit in the sense it highlighted American entrepreneurship and the spirit of innovation. This appreciation goes towards of course the McDonald’s brothers who innovative the process making of their food and utilized the labor to make such food. It is a bit similar feeling to that of Henry Ford and his innovation of the assembly line to make cars fasters and more affordable.
    Furthermore, even if some people dislike Ray Kroc, his vision to expand upon the brother’s idea is phenomenal. One would have to assume that had it not been for Ray Kroc, McDonald’s would be nonexistent today and the brothers would’ve not received their 2.7-million-dollar settlement with Raymond. What Kroc had that the brothers lacked is the vision and risk-taking to mortgage his house and meet new people that will have been able to run the businesses sufficiently.

One thought on “The Founder

  1. xue,wang

    1. The biggest difference between the McDonald brothers and Ray is their goals and philosophies. Ray wants more than just a profitable restaurant. He wanted it to go from one small place to every big city, all over America. Around the world, Kros Ray is more concerned with making money by multiplying his business. the purpose is to let standards and concepts dictate how to deal with differences in various issues. Ray considers franchisees to be those who find them at odds with their values. However, considering the quality issues, the McDonald brothers want to open as few stores as possible. They care more about their product quality and customer experience.

    2I think the McDonald’s brothers will regret selling to Ray Kroc, they invented the model of efficient operation of the restaurant, they can solve the drive-in restaurant, do not need long waiting time, can save labor, and become automated assembly line operations, strict control Although they lack foresight, there will be other names to replace them in the future, but they can still insist on doing what they like, rather than being forced to buy their brand.

    3 McDonald’s will inspect a piece of land or a store, buy the land with the real estate developer or negotiate the lease term and rent with the landlord, and then lease the store to the franchisee, charging 20% ​​of the rent from the franchisee, and according to the real estate appreciation situation Make corresponding increments. to open a McDonald’s, the other party not only earns the franchise fee, but also has to pay the rent!

    4 You can only take 1.9% of the chain’s turnover as a service fee. Among them, 1.4% is used for your services to the chain, and 0.5% is given to us as royalties for using the store name and production system.

    5I think I can remember Ray Kroc more, people tend to remember the adventurer’s story. Although Ray’s victory is quite controversial, some people think that he is just a liar who is very good at doing business, and some people think that he will do anything to achieve his goals, but when a person’s persistence and determination are strong enough to focus on nothing else, it doesn’t matter whether his behavior goes against the general public. world value. The door to success is still open to this middle-aged and elderly person. Hence the name McDonald’s.

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